Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1887-09-07
WRECKED BY MONOPOLY.

A Doleful Picture from the Land of Der
ricks and Oil Tanks-Pennsylva nia Oil
Men Bankrupt.
P1TTsBURG, Pa, Sept. 3.-In few DAYS
the Pennsylvania oil fields will be vir-
tually idle. The producers are bank
rupt and will shut off production as
last and desperate chance of relief.
The regions that have produced millions
upon millions of dollars worth of Pc
troleum are to-day little better off than
if the golden fluid had never been discov-
cred. Sheriffs' sales are the most conspic-
uous signs everywhere. Splendid resi-
dences that were built by the lucky
oil seeker in the palmy days before 'S5
are the only indications that prosperity
once abided with the oil producer. Even
these are sadly out of repair, and the
once fortunate owner who found the
roomy mansion too small for his swollen
wealth now discovers that he has white
elephant on his hands, and is content
TO occupy two or three rooms of the
dwelling, letting out the remainder
to dodgers. Men who formerly had an
income of $25, 500, 5000 a day from
their wells now get laborer's wages.
Many of the larger producers are run
ming their wells at loss Hundreds of
uT11l0TS, UOOI uISSS0I6, DuIupCIS anu
carpenters are out of work because
almost no new wells are going down and
those now in operation are worked in
the most economical manner possible.
Wages have not been 80 low since oil
was discovered. If this depression con-
tinues for another six months those still
engaged in the oil business will quit as
many hundreds have already done.
Speculation, too, Is paralyZed.
Spectators have learned by sad
experience that, owing to the excessive
storage charges, they must clear Is per
cent. on their trades to come out even.
With the operator and driller they are
engaging in other pursuits. The mag
nitcent Western Pennsylvania ex-
changes erected in the halcyon days of
"dollar" oil are now little attended and
in the vast emptiness the occasional
bidder is startled at the sound of his
own voice.
The consumer for years has been pay
ing to the Standard Oil Company for re-
fined oil one-third more than 1T would
cost if the production and manufacture
of oil followed natural laws. The con-
sumer has really enriched the great oil
monopoly more than the producer, but
because the hand of extortion is laid
| lightly upon him individually he does
not feel it. A few cents week from
each consumer makes millions of
dollars for the Standard With no
excuse whatever, the Standard in 1876
put up the price Of refined oil from l6 to
go cents a gallon, and in 1880 it raised
the price from 8 to II cents. In both
instances the purchasing price of the
crude oil remained the same. The
Standard buys at its own price and sells
at its own price. Other commodities are
"cornered' occasionally, but oil is in a
chronic state of corner"
Should the Standard so desire there
is nothing to prevent its putting the
price of oil up to so cents gallon for at
least six months, as it would be that
time before competition could be devei-
oped to cut down the price. It rules the
| home and foreign trade alike. The
Russian companies, about which SO
much has lately been written, will not
| be serious competitors of the American
monopoly for several years, even sup
posing that the quality of the oil is
equal to the Pennsylvania product as
the cost of production and .transporta-
ton in Russia by present methods is
too great to make the oil business in
that country profitable.